The Affordable Care Act includes a provision for an annual assessment on insurers and group health plans to fund a Patient-Centered Outcomes Research Institute (PCORI), which assists patients, clinicians, purchasers and policy-makers in making informed health decisions by advancing comparative clinical effectiveness research. PCORI has since been established, and the ramifications of funding this initiative are still being evaluated as businesses around the country adjust to these new policies.
This month, IRS Form 720 was revised to include, at Part II (page 2 of 7) at line 133, a space to include your headcount, multiply it by $1 (for this year) and $2 for all subsequent years (until it sunsets with the 2019 plan year). Completed, signed Form 720s are due by July 31, 2013, along with payment.
- IRS Form 720
- IRS Form 720 Instructions
- Tax Deductible. In his May 31, 2013 memorandum (released June 7th), Andrew J. Keyso, Associate Chief Counsel, concluded that the PCOR fees are tax deductible: “The required PCOR fee will be an ordinary and necessary business expense paid or incurred in carrying on a trade or business and, therefore, will be deductible under § 162.”
For more information on how PCOR fees can effect your organization, contact Nikki Strickler at nstrickler@deeleyinsurance.com.
